Yesterday Daryl Katz informed Edmonton Mayor Stephen Mandel that he wouldn't accept the mayor's invitation to come talk to city council. Today city council voted unanimously to cease negotiations with the Katz group and empowered city administration to look at other options.

This doesn't mean the deal is dead. The city is still very much open to negotiating with the Katz Group, but they will cease spending any more money on the design at this point.

Call it part of the negotiations, but for Edmontonians it was just another bad day in a four year negotiation.

This doesn't put the city any closer to a new arena, and make no mistake Edmonton needs a new arena, mostly because we need to start upgrading our downtown. The arena will be the catalyst, and now we to wait until January 13th to find out what the next step is.

There was also a motion tabled that would see the city agree to the original deal from last October. The reality is the longer this deal takes to make the more it will cost. For all those who are celebrating today as a defeat of Katz, keep in mind the city is no closer to a new arena, and you might be on the hook for the entire thing.

The most sobering and disappointing comment came from Mandel, "I don’t believe we are much further ahead today than we were four years ago except for a greater ask of money.”

Four years and no progress. Ouch.

Simon Farbrother, who has been negotiating on behalf of city administration, told council he didn't get the sense the Katz Group wanted to back off of their new demands of another $6 million/year in operating subsidy and so city council voted to cease negoitations.

WHAT NOW

I honestly don't believe that negotiating publicly would have helped Katz, but by not showing up he lost the trust of many Edmontonians. Why couldn't he have shown up and stated he was willing to continue to negotiate, but didn't feel doing it publicly would help. At least he would have shown he was willing to talk, and maybe answer a few simple questions.

Many have suggested the Katz Group should have to show his financials to city council. This could turn out to be a legal nightmare for the city. Can anyone guarantee some of the info wouldn't be leaked publicly? Rather than worry about that, city councillors should at least get to see the Master agreement. To date they've never seen that, and that is a tad perplexing. I'm not in favour of the Katz Group needing to show their finances. I think we can all see the Oilers have made a profit in the past.

The city can look at funding the arena on their own, but there will be some hurdles. They'd have to negotiate rent with Katz and they'd have to give him some non-game night revenue. Also then they'd be in the business of operating the arena, and that is something the city should be a part of. Maybe Katz operates it, who knows, but I don't think Katz will completely walk away.

I applaud the city for taking a stand. I feel this was a tough decision that needed to be done. I still believe both sides will meet again though.

Today was not a win for anyone. We aren't any closer to a new arena, and in fact we are farther away than we were last October.

I hope that before January 13th the Katz Group contacts city administration and continues to negotiate. If they don't then city administration has to do some serious research and find out the major hurdles of building on their own and ensure they come to city council with plan that ensures we reach an arena deal sometime in 2013.

Unfortunately there is no resolution in sight. You know it is bad when the NHL and NHLPA might reach an agreement before the Katz Group and the city does.

One of Canada's most versatile sports personalities. Jason hosts The Jason Gregor Show, weekdays from 2 to 6 p.m., on TSN 1260, and he writes a column every Monday in the Edmonton Journal. You can follow him on Twitter at twitter.com/JasonGregor

This is terrific!
A museum that cost 350 million dollars a 100 % built with our taxes for a minority of the population will ever even use, we get to look forward to a council that took four years to broker a broken deal, flip flop on the 23rd ave interchange, let all the corporate offices leave to Calgary and take a decade to make the Henday, we the citizens get to fund a whole new arena project with immediate out of pocket taxes. B-e-a-utiful deal!

On a brighter note we get to watch Katz take the Oilers out of Edmonton, after watching them suck for a better part of a decade and just when they get good Katz will yank the Oilers out of Edmonton.

Meanwhile city council decides on what Communist looking concrete construction the lowest bidder will provide the greater Edmonton area with, while Northlands conveniently steps in and rapes the city anyways while the city still looks to attract another NHL club that should take another 5-8 years.

It's pathetic that the biggest Oiler supporters have had it with Katz. He comes across as being extremely disingenuous.

How did his original sales pitch of a facility for the UofA and $100M upfront turn into $0 upfront, a casino, a $6M/year subsidy, an office tower occupided by the city, and a weak attempt to relocate the team?

I think Katz 'vision' for Edmonton, is of himself in the mirror. (With as much of our money as possible)

If he doesn't like the 'framework' he agreed to last year, it's time to look for another owner. Or a private investor to offset the potential risk he's concerned about taking on himself.

If the Oilers are losing $$ like Daryl says they are then shut the whole thing down. They are in the top 1/4 of the league in ticket prices and have a fairly lucrative regional TV deal and I would think their merchandise sales are also among the leaders in the league as well. If they cannot make money, I can't even fathom what the red ink would look like for the Florida teams, Nashville with the giant Weber contract, St. Louis, Dallas, or any team in California. Hell, I think you could pick just about any team outside of the original six franchises and they would be in worse fiscal shape than the Oilers. Make an argument for more money fine, but at least make it believable.........

Generating an extra $30 million in taxes for land surrounding the arena. Fact, it happened in Columbus.

You think a new fancy arena downtown won't generate lots of new businesses and higher taxes? It has been proven in many cities.

Oh and FYI the city agreed to a deal already. Katz came up with a surprising last-minute ask for $6 million because the casino deal he was hoping for didn't arise.

Also go research Pittsburgh and tell me there city hasn't completely revitalized their downtown with THREE new facilities. They attract many new musical acts they never did before and other major events. So there are your facts.

You don't have to like the arena, in fact I respect your opinion not to think it is good for our city. But when it is built I hope you honour your word and never enjoy any of the events there, because clearly you think it is a drain to the city.

If you don't understand the difference between public and private goods then you don't get to be a part of the conversation.

This is getting stupid. You repeat this everywhere you post but you have yet to demonstrate the difference. An arena is a public good in every sense of the word. You just don't like that a private business may profit from it. That's fine, that's your right, but denying the arena as a public good is doing your own position a disservice.

@Jason Gregor

But when it is built I hope you honour your word and never enjoy any of the events there, because clearly you think it is a drain to the city.

This is equally asinine. You don't give up your right to use a facility simply because you think it's a bad idea.

Not that I am with Katz but why is it that the artsy fartsy get what they want fairly easily but sports related fans have to work there butt off to get support? Katz should get some arts group on his side and watch the arena magically appear.

With the whole lockout thing, and now the arena sh$#show, I don't care anymore! I'm a season seat holder, not from Edmonton, and I've had enough! Move the fu$@g team! I'm sick of the whole thing! I'll find something else to do with my money and time!

I wanted to add to the conversation so I thought I'd adopt the language. Except I think when you translate what I said to english it says, "Where can I Milk the Hamburger?" and all I really wanted to say was, "Where can I find the Washroom?".

I think I should cancel my extended vacation to the Island of Accounting.

Why does the city need an arena? If an arena costs more to build than the revenue it generates, and that appears to be the case, what does the arena do other than syphon off resources from projects that provide a return on investment.

What evidence is there that an arena provides a catalyst to downtown development? Every time I hear this it sounds like pseudo-magical thinking. And if it does provide a catalyst, how do you measure the difference between an arena and no arena? If you can't answer these questions then building an arena is just throwing money at a problem and hoping. Public policy on a wish and a prayer is not a plan we should be following.

If the Oilers are losing $$ like Daryl says they are then shut the whole thing down. They are in the top 1/4 of the league in ticket prices and have a fairly lucrative regional TV deal and I would think their merchandise sales are also among the leaders in the league as well. If they cannot make money, I can't even fathom what the red ink would look like for the Florida teams, Nashville with the giant Weber contract, St. Louis, Dallas, or any team in California. Hell, I think you could pick just about any team outside of the original six franchises and they would be in worse fiscal shape than the Oilers. Make an argument for more money fine, but at least make it believable.........

The Edmonton Oilers get ZERO non-hockey related revenue from RX1.

The Only NHL team that has this arrangement, hence the extra ticket prices ect, to make up revenue!

FLA and NASH don’t even have to sell a ticket to make money! There rinks make more money NOT playing hockey!

The Only NHL team that has this arrangement, hence the extra ticket prices ect, to make up revenue!

FLA and NASH don’t even have to sell a ticket to make money! There rinks make more money NOT playing hockey!

How is that a level playing field? The Oilers need a new rink period.

Not quite true. The Oilers manage the arena suites and get all the ticket and concession revenues from them for every event in the Coliseum. Their deal also gets them a pouring rights fee when Northlands (who have a different brewery sponsorship agreement) runs an event like the CFR. The Oilers get all the advertising revenues in the building.

Rexall Pharmacies pays Rexall Sports and Entertainment for the naming rights. Northlands supplies all the staff for hockey games, which is a savings for Katz. The city gives Northlands the non-hockey ticket tax and $2.5 million to help pay for costs the Oilers don't have to pay, saving him money too.

He has a better deal than some teams that get all the revenues but have to pay all or a majority of the costs.

I applaud the city council and Mayor they called this clowns bluff the past 30 days, now where is he

unless he has a better eye on a deal, but masterful for city to look at doing themselves.

We build an arena, there's no way the NHL ignores us, but too handover 100% revenues would be ridiculous and wont happen obviously

This deal has always been 100 mill short to begin the despite Mandel reassurances which are so far empty

Katz has been played!

He will have to come back, at worst, the city will build a scaled down version, still more than adequate, and Katz can't leave , NHL won't let him, city has the leverage, perfect and about time

And best of all DSF can shut up about taking the Ferry to Seattle LMAO

I'll always be more than willing to talk about the breathtaking ferry ride to Seattle.

It just has so much more cache than a drive from Edmonton to Calgary in a snowstorm to watch an NHL game.

But enough about me....

At this point, I think it's likely Katz will quietly put the team up for sale and we'll see if there is anyone in Edmonton with the stones and the rubles to buy the team for $225 million.

I expect there isn't.

Once Bettmann becomes aware that the the team has a reluctant owner and a shabby arena to play in, he won't be adverse to a relocation.

The City can ramble on about the possibility of building the arena on its own but it must be remembered that, without Katz, $125 million in ticket surcharge revenues will vanish as will Katz' $5.5million annual payment.

One would assume Katz will also pull back on his commitment to invest in the surrounding arena district so the value gleaned from the CRL will be much delayed and/or much reduced.

If the City can come up with $450 +++ million of its own (very doubtful) it will then have to go about wooing a major tenant to make its investment worthwhile.

Since we know how long it takes Edmonton council to make a decision on anything of import, it's highly like that, even if the city finances the whole thing, it will be many year before it is finished meaning construction costs will soar even further.

I disagree on the four years of negotiations, it's closer to twenty. This is the third owner(ship) trying to get a new building, city councils come and go, but one common denominator is Northlands has far to much influence in this city in all matters. The media is scared to shine a light on Northlands, but their not scared of a multi-billionair. What it tells me is Nortlands drives policy behind the scenes, how many councilars have a past or present relationship with Northlands. Anybody can support a new building in front of the cameras, and then undermine it behind the scenes.

This deal would have been done at least two years ago if the city had issued a non-compete to Northlands. The reason Katz has to take such a conservative stance in his revenue projections (and thus now thinks he needs an operating subsidy) is that he must assume Northlands will compete for every piece of concert/event business up for grabs. Being a paid-in-full (100% by the city) property, they'll easily undercut every RX2 bid, thus take a substantial amount of business.

Northlands has enough political clout to make sure that non-compete will never happen. RX1 is their primary revenue generator so they'll do everything in their power to keep it operating when the truth is, this city cannot sustain two arenas.

I want the new rink as much as and possibly more than the next guy, but can we leave the art gallery and museum out of the argument. The city needs those buildings as much as, if not more than they need the new rink. If you are choosing to not go to either, that's fine and your choice, but I can afford to take my family to both, several times over before I could dream of being able to take my family to an Oilers game. And both buildings and the great exhibits they put are well worth the money. You should really try to go sometime...

The problem with this is Katz is playing some game where he's the only one who knows what's going on. He's pissed off the city, and his biggest supporters on the council, he's pissed off most of the city with his ignorance and inability to speak up in public about why we should fund more of the arena operating costs. If he wants the money then someone from the Katz group needs to step up and say what they want and why. Without that they aren't going to get anywhere fast.

The fact that you enjoy and can afford a museum is irrelevant. They are bult with public money, they service a relatively small portion of the population, and they do not provide good return on investment.

The only reason people see a difference is because a wealthy man might profit from one. This is not a good reason to refuse to build an arena. There are plenty of other reasons, but this is pure idealistic nonsense.

You also know its bad when Katz wants Gary to step in and help with negotiations. I assume that means slapping the city in the face and then not talking about anything important for quite some time. Then, propose something fair, and hope the other side agrees. Just put your penis meter sticks away, talk, and figure something out.

Penis sticks not standing, I don't think Katz is willing to negotiate until their is a credible council to negotiate with.

I bet the NHL would love for this oilers team to be moved to Seattle or Houston or somewhere south and move a team like Pheonix to edmonton..
Why?
Edmonton fans will always show up no matter what, south of the border names like Ebs, Hall, RNH, and Yakupov would be huge selling points..

As one of the many that was ecstatic when Katz bought the team I am seriously disappointed in the latest news. To me Katz is either an incredibly arrogant rich jerk or he is running a house of cards like Peter Pocklington and needs hockey to support his lagging businesses. The man will go visit the city of Seattle but won't lower himself to talk with the city of Edmonton, his supposed partners. The man who is "willing" to put 5.5 million dollars yearly towards building the arena if the city pays him 6 million dollars to offset it. Turns out he is not the saviour he led us to believe but just the latest owner with a napoleonic complex to try to blackmail our city because of our love of hockey. Well there is bad news Katz. Our love of hockey is being ruined by the other Napoleon, Bettman, and the incredibly shortsighted and greedy NHLPA. Eventually, and quickly, there will be a tipping point where many of us just won't care. That point may have already been reached in many regions of the U.S. and it is folly to think it can't happen here.

Props to many on the city council who put their careers on the line and got their feet kicked out by the latest greedy "gnome".

The fact that you enjoy and can afford a museum is irrelevant. They are bult with public money, they service a relatively small portion of the population, and they do not provide good return on investment.

The only reason people see a difference is because a wealthy man might profit from one. This is not a good reason to refuse to build an arena. There are plenty of other reasons, but this is pure idealistic nonsense.

Tiger, on days like today I wish I could put more than one prop per comment. Well said.

Man this is becoming a joke, Katz is so greedy it's unbelievable , I welcomed him as an owner 4 years ago and now , I wish he would sell the team too someone else in Edmonton.

It doesn't have to be greed. He could be telling the truth that he can't make money under the current arrangement because operating expenses would be too high. However, if that is the case then that is even more reason not to build the arena. If an arena doesn't make sense even if you are having it built for free and you are getting all the revenue then it surely doesn't make sense for the city to pay for it and not get all the revenue.

Why does the city need an arena? If an arena costs more to build than the revenue it generates, and that appears to be the case, what does the arena do other than syphon off resources from projects that provide a return on investment.

What evidence is there that an arena provides a catalyst to downtown development? Every time I hear this it sounds like pseudo-magical thinking. And if it does provide a catalyst, how do you measure the difference between an arena and no arena? If you can't answer these questions then building an arena is just throwing money at a problem and hoping. Public policy on a wish and a prayer is not a plan we should be following.

This is terrific!
A museum that cost 350 million dollars a 100 % built with our taxes for a minority of the population will ever even use, we get to look forward to a council that took four years to broker a broken deal, flip flop on the 23rd ave interchange, let all the corporate offices leave to Calgary and take a decade to make the Henday, we the citizens get to fund a whole new arena project with immediate out of pocket taxes. B-e-a-utiful deal!

On a brighter note we get to watch Katz take the Oilers out of Edmonton, after watching them suck for a better part of a decade and just when they get good Katz will yank the Oilers out of Edmonton.

Meanwhile city council decides on what Communist looking concrete construction the lowest bidder will provide the greater Edmonton area with, while Northlands conveniently steps in and rapes the city anyways while the city still looks to attract another NHL club that should take another 5-8 years.

Welcome Edmonton Coyotes 2019!

Don't think I've ever seen a post on the entire internet that I agree with more.

This is a real question. How many people a year grace the 350 Million dollar art gallery? I suspect the number is quite low. But these are the movers and shakers of the city and city councel I suspect. Yet those of us blue collar workers and middle income people who actually pay our taxes because we don't get tax shelters galore can't have a new rink. Don't get me wrong Katz needs to man up and start communicating with the people he wants the money from.

We need a new arena period. One of the many reasons is to keep northlands out of it. Look how bad they helped screw up champ car. I am glad they said screw you to Katz. Time to sell the team and go jump of a cliff. I would gladly own the oilers play in rexall and make 17M dollars a year also knowing that I am employing hundreds of people who most likely love their jobs.

IF YOU WANT TO MAKE YOUR POINT TO KATZ, NOW IS THE TIME. BOYCOTT REXALL AND BOYCOTT THE OILERS.

You can make your point to the NHL and NHLPA at the same time.

**a very simple start is to not click on their websites, get your updates from an independant site**

This is terrific!
A museum that cost 350 million dollars a 100 % built with our taxes for a minority of the population will ever even use, we get to look forward to a council that took four years to broker a broken deal, flip flop on the 23rd ave interchange, let all the corporate offices leave to Calgary and take a decade to make the Henday, we the citizens get to fund a whole new arena project with immediate out of pocket taxes. B-e-a-utiful deal!

On a brighter note we get to watch Katz take the Oilers out of Edmonton, after watching them suck for a better part of a decade and just when they get good Katz will yank the Oilers out of Edmonton.

Meanwhile city council decides on what Communist looking concrete construction the lowest bidder will provide the greater Edmonton area with, while Northlands conveniently steps in and rapes the city anyways while the city still looks to attract another NHL club that should take another 5-8 years.

As a young man I learned to intentionally screw up any job I was forced to do, such as breaking dishes that needed washing or adding bleach to the colored clothes during laundry. Without actually refusing the work, without even complaining about the work,I got out of my responsibilities. Is it possible Katz has had a change of heart about being in the arena- operating busness? Without admitting it, he gets out of the situation by his douchery, knowing that the city will build an arena without his input. Is he really the puppet master? Or is he Pocklington version 2?

It occurs to me that Katz hired Bob Black (specifically) to handle this entire arena thingy on behalf of the Katz group.

So.

Given the assumed importance of this particular sitting of council to the City in regards to the arena deal. I would view this as a unique opportunity for Mr. Black to state the delinquencies of the proposal as viewed by the Katz group.

Instead.

A rather gutless letter from Katz (supposedly) stating that they wouldnt be attending.

This hasn't been a negotiation as much it's been a PR battle. Instead of bickering, posturing and bullying, they need to sit down and work out a fair deal.

The city deserves to get a return on it's investment, and Katz deserves to turn a profit. As long as the city clears the debt incurred from the construction and turns a profit before the end of the lease, does it really matter how much the team profits?

I disagree on the four years of negotiations, it's closer to twenty. This is the third owner(ship) trying to get a new building, city councils come and go, but one common denominator is Northlands has far to much influence in this city in all matters. The media is scared to shine a light on Northlands, but their not scared of a multi-billionair. What it tells me is Nortlands drives policy behind the scenes, how many councilars have a past or present relationship with Northlands. Anybody can support a new building in front of the cameras, and then undermine it behind the scenes.

I'll always be more than willing to talk about the breathtaking ferry ride to Seattle.

It just has so much more cache than a drive from Edmonton to Calgary in a snowstorm to watch an NHL game.

But enough about me....

At this point, I think it's likely Katz will quietly put the team up for sale and we'll see if there is anyone in Edmonton with the stones and the rubles to buy the team for $225 million.

I expect there isn't.

Once Bettmann becomes aware that the the team has a reluctant owner and a shabby arena to play in, he won't be adverse to a relocation.

The City can ramble on about the possibility of building the arena on its own but it must be remembered that, without Katz, $125 million in ticket surcharge revenues will vanish as will Katz' $5.5million annual payment.

One would assume Katz will also pull back on his commitment to invest in the surrounding arena district so the value gleaned from the CRL will be much delayed and/or much reduced.

If the City can come up with $450 +++ million of its own (very doubtful) it will then have to go about wooing a major tenant to make its investment worthwhile.

Since we know how long it takes Edmonton council to make a decision on anything of import, it's highly like that, even if the city finances the whole thing, it will be many year before it is finished meaning construction costs will soar even further.

Would the last one out please turn off the lights.

Problem is, Katz most likely overpaid for the team with the assumption he'd make the premium he paid back with the new arena deal. He bought the team as an actual business proposition, rather than a hobby as many would believe. IMO, this is the root of the problem.

Problem is, Katz most likely overpaid for the team with the assumption he'd make the premium he paid back with the new arena deal. He bought the team as an actual business proposition, rather than a hobby as many would believe. IMO, this is the root of the problem.

http://www.mc79hockey.com/?p=4927

Yeah, I think he had to pay a premium to get the team from EIG but Forbes now values the franchise at $210 million and I expect that will shoot up a bit as soon as the new CBA is in place.

This is a real question. How many people a year grace the 350 Million dollar art gallery? I suspect the number is quite low. But these are the movers and shakers of the city and city councel I suspect. Yet those of us blue collar workers and middle income people who actually pay our taxes because we don't get tax shelters galore can't have a new rink. Don't get me wrong Katz needs to man up and start communicating with the people he wants the money from.

What $350 million Art Gallery, the Art Gallery of Alberta was $88 million?